Prices Increasing Soon
Term life insurance plans provide compensation to your family or relevant nominee if you die within the policy tenure. After your demise, a lump sum death benefit is paid to your nominee. While a term plan is great for ensuring the financial protection of your dependents after your death, not all deaths are covered under such policies. Hence, it is prudent to be orderly aware of the terms and conditions of a term insurance plan before investing in it.
#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply
By clicking on "View plans" you agree to our Privacy Policy and Terms of use
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
The 8 major death cases that are not covered under term insurance are:
Murder: Under two situations, compensation shall not be given under term life insurance if the policyholder is murdered. These situations are:
Situation 1: If the nominee is a criminal: The insurance company will not settle the claim if it is revealed that the nominee was involved in the policyholder's murder after the relevant investigations. The payout under this plan will only be made if the nominee is innocent of all crimes or if the murder charges are dropped. The insurance company withholds the payout for an indefinite period till the case is resolved in the nominee's favor.
Situation 2: If the policyholder died due to their involvement in any criminal activity. The insurance company will not settle the claim if the policyholder gets murdered due to his/her involvement in a crime defined by the law. Conversely, the nominee will get the payout if the policyholder has a criminal record but dies due to natural uncertainties like medical conditions or accidents.
Death Occurs Under Alcohol Influence: In case the policyholder dies by driving under the influence of any narcotic substance or alcohol, the insurance company will reject the claim. Most insurers do not issue life insurance plans to individuals who consume narcotic substances or drink heavily. If policyholders had not orderly disclosed such habits while investing in their term life insurance policy, the insurance company shall withhold the death benefit. If you are a heavy drinker, you need to provide a correct declaration of history of alcohol consumption in the proposal form during the underwriting stage. This declaration will include the type and quality of alcohol consumed by them. Submitting this declaration beforehand can prevent claim rejection.
Death Caused Due to Heavy Smoking: If you are a smoker, it is important to reveal the habit before investing in the term insurance plan. Smokers have a higher degree of health risk, and many insurance companies add an extra amount or load to the premium for them. Suppose you do not disclose this habit while purchasing the policy. In that case, the insurance company can deny the claim if your demise was caused due to any smoking-associated complication or health condition.
Death Caused by Participating in Hazardous Activities: Death caused due to taking part in any hazardous or adventurous activity is not covered by a term insurance plan. Such activities pose a threat to your life and can lead to fatal accidents. Suppose you commonly participate in adventure sports like hiking, parachuting, paragliding, skydiving, or bike and car racing. In that case, you need to disclose this information at the time of purchasing the policy. Not doing so is a material misrepresentation, and your insurance company is not warranted to honor the claim if your death occurs due to a hazardous activity or sport.
Death Due to Pre-Existing Health Conditions: If you die due to any medical condition that existed during the time of availing of the term life insurance policy, the insurance company will not settle the claim. You need a specific rider to cover pre-existing critical illnesses that can lead to death. Death due to STDs like AIDs or HIV is also not settled by the insurer if a rider does not cover it.
Suicidal Death: Several insurance companies do not provide coverage for suicidal death. Therefore, you need to go through the terms and conditions of these plans properly before investing in them.
In addition to the situations mentioned above, you need to consider what is term insurance and the types of deaths they do not cover, like death due to terrorist attacks and/ or deaths taking place outside the country. Exact details about the exclusions of a plan can be found in its relevant policy document. Therefore, it becomes crucial to acquaint yourself with all the terms and conditions of your policy. You can calculate the premiums applicable for the suitable term plan cover using the term insurance calculator available online.
Many invest in term insurance to be assured that their nominee acquires a lump sum amount if they die within the policy tenure. However, there are many instances under which life insurance policies shall not cover your death. You need to be adequately aware of these situations before purchasing a term insurance policy. Knowing the exclusions will help your family or nominee avoid any confusion during the claim in case your death occurs in any of the situations mentioned above.
Note: Check all the best term insurance plan in India.
Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.
˜Top 5 plans based on annualized premium for bookings made on https://www.policybazaar.com in the first 6 months of FY 24-25.
Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
+Rs. 487/month (Rs.16/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited
We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881
For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale
Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.
© Copyright 2008-2025 policybazaar.com. All Rights Reserved
+Rs. 820/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
+Rs. 1,443/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
In Madhya Pradesh, the loss of a primary earner can place
Read more
ICICI Prudential Life Insurance Income Replacement Plan is a
Read more
In Himachal Pradesh, where families often rely on agriculture
Read more
The ICICI Prudential Life Insurance Income Replacement Plan is a
Read more
In Meghalaya, where the per capita income is lower than many
Read moreInsurance
Calculators
Payment Methods
Secured With
Follow us on
